Here, we present a facile and environmentally friendly synthetic protocol to fabricate highly luminescent and water-soluble Fe: ZnSe nanocrystals in aqueous solution at low temperature. The microstructure and various physical properties (e.g., crystal structure, interplanar spacing, lattice parameter, crystalline size, lattice microstrain, intrinsic stress, X-ray density, specific surface area, dislocation density, porosity, agglomeration number) of the Fe: ZnSe nanocrystals were systematically investigated using X-ray diffraction. The particle size and morphology of the Fe:ZnSe nanocrystals were determined by transmission electron microscopy. The optical properties (e.g., absorption and photoluminescence) of the fabricated nanocrystals were explored using ultraviolet-visible absorption and photoluminescence spectroscopies, respectively. The surface functionalization of the Fe:ZnSe nanocrystals by mercaptoacetic acid ligand was evidenced by Fourier transform infrared spectroscopy. To confirm the elementary composition of the obtained nanocrystals, Energy dispersive X-ray spectroscopy was performed. To further shed light upon elemental distribution of the resulting nanocrystals, elemental mapping measurements were conducted. Moreover, the underlying mechanisms were also elucidated. As a consequence, the current investigation not only provides a deep insight into exploring the physical properties of doped nanocrystals, but also demonstrates a useful synthetic strategy for producing water-soluble and highly fluorescent doped nanocrystals. (C) 2014 Elsevier BY. All rights reserved.